What Is Total Supply? What Does It Mean?

Total supply is the sum of the amount of a cryptocurrency that has been released and includes all of the cryptocurrencies that have already been minted.

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Total Supply refers to the sum of cryptocurrencies that have been produced and released. Total supply is the sum of the cryptocurrencies that have already been produced. However, the total supply does not include the number of cryptocurrencies burned. Total supply also excludes assets that are expected to be produced but have not yet been produced. To arrive at the market capitalization of a cryptocurrency, the circulating supply is used, not the total supply.

Total supply includes all digital assets produced and traded in the market, excluding uncirculated, unproduced assets. Total supply is not used to determine the maximum amount of digital assets that can be produced. Total supply, circulating supply and maximum supply are often confused with each other. Some cryptocurrencies have a limited total supply, while others do not.

Total supply refers to the sum of assets publicly traded in the market. In general, the ratio of cryptocurrencies’ circulating supply, total supply and maximum supply is variable. For instance, Ripple (XRP) has a circulating supply of 50,799,084,881 XRP, a total supply of 99,989,130,718 XRP and a maximum supply of 100,000,000,000 XRP.

Examples of cryptocurrencies with limited total supply:

Avalanche (AVAX) 420.531.657

Bitcoin (BTC) 19.297.543

Bitcoin Cash (BCH) 19.317.844

Polkadot (DOT) 1.285.504.294

Litecoin (LTC) 84.000.000

Some cryptocurrencies whose total supply is unlimited:

Ethereum (ETH) 122.373.866

EOS (EOS) 1.083.321.383

Dogecoin (DOGE) 132.670.764.300

Terra Classic (LUNC) 9.800.942.586

Tron (TRX) 91.551.414.542

What Happens If Total Supply Increase?

In the case of an increase in total supply, if supply and demand rise together, a rise in supply triggers the price level down and a rise in demand triggers the price level up. If the rise in supply is greater than the rise in demand, the price falls.

If the increase in demand is greater, the price will also rise, but if the effect of both is equal, there will be no change in the price.

What Is Maximum Supply?

Maximum supply indicates how much of a cryptocurrency can be produced in total. Maximum supply refers to the predetermined maximum quantity of a cryptocurrency that will ultimately be released. In most cases, once a cryptocurrency reaches its maximum supply, no new cryptocurrencies can be produced and it is not possible to mine or otherwise acquire the asset in question.

When a cryptocurrency is launched for the first time, not all of the maximum supply is put into circulation. The maximum supply is compared to the circulating supply to estimate how many assets will be released in the future. If the circulating supply is 100,000 units and the maximum supply is 1 million units, 900,000 cryptocurrencies are expected to be released in the future.

Here are some of the cryptocurrencies with a small maximum supply:

Calvaria (RIA) 1.000.000.000

TamaDoge (TAMA) 2.000.000.000

Battle Infinity (IBAT) 10,000,000,000

Polygon (MATIC) 10.000.000.000

Yearn Dinance (YFI) 36.666

How to Maximize the Supply of Cryptocurrencies?

Some cryptocurrency classes are divided into mineable and non-mineable. Mineable assets are those whose circulating quantity increases over time and will therefore reach maximum supply in the future.

As an examle of maximum supply, Bitcoin (BTC) has a limited supply of 21 million, with 19,293,700 BTC in circulation at the time of writing.

Miners can produce new assets until Bitcoin completes its maximum supply.

What Is Circulating Supply?

Circulating supply refers to the number of units in the market that are available for trading on different cryptocurrency platforms. The circulating supply is the number of cryptocurrencies that are in circulation and actively traded, and therefore does not include locked or unreleased assets.